Tag: Motley Fool

The Marley Spoon AG (ASX: MMM) share price is out of form on Monday and is sinking lower.

In afternoon trade the subscription-based meal kit company’s shares are down 6% to $2.71.

This latest decline means the Marley Spoon share price is now down almost 29% from the 52-week high it reached just under a month ago.

Why is the Marley Spoon share price down 29% in a month?

Investors have been selling the company’s shares since the release of its half year results at the end of last month.

Although Marley Spoon delivered a very strong result, investors appear to have been expecting even more from the company. Especially given its incredible share price increase since the start of the year.

Year to date the Marley Spoon share price is still up 868% even after its sizeable pullback over the last few weeks.

Why is Marley Spoon on fire in 2020?

The catalyst for this incredible rise has been the strong demand the company has been experiencing because of the pandemic.

Lockdowns and social distancing initiatives have led to more and more consumers skipping restaurants and cooking at home. For the same reason, Breville Group Ltd (ASX: BRG) has reported very strong sales of its kitchen appliances this year.

In the first half of FY 2020, Marley Spoon reported an 89% increase in revenue to 116.2 million euros. Almost two-thirds of this revenue was generated in the second quarter at the height of the pandemic.

This was driven by a 104% increase in active customers to 350,000, a 5% lift in orders per customer to 4.4, and a 7% rise in average order value.

But perhaps best of all, this was achieved at a significantly lower customer acquisition cost. This led to Marley Spoon becoming operating cash flow positive by the end of the half.

In light of this strong form and continued solid demand in the third quarter, management upgraded its revenue growth guidance for FY 2020 to between 80% and 100%.

Is it too late to invest?

I think Marley Spoon is an exciting company and worth keeping a close eye on. But for now, I would suggest investors keep their powder dry and wait to see how it performs when the crisis passes.

At that point, I think it will be easier to judge whether its current valuation is appropriate or excessive. 

More reading

• The Future Fund is stockpiling cash. Should ASX investors take the hint?
• Is the Domino’s share price too expensive?
• Why Splitit and these ASX shares just hit new highs
• Marley Spoon share price on watch after upgrading revenue guidance
• On a day when the ASX 200 is going nowhere, these popular “coronavirus shares” are hitting record highs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Tyro Payments Ltd (ASX: TYR) share price is recovering from its morning fall after it provided its latest weekly transaction update.

The TYR share price jumped 1.4% to a two-month high of $1.65 at the time of writing when the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) are trading just below breakeven.

Shares in the electronics payment provider is also performing better than most of its peers. The Afterpay Ltd (ASX: APT) share price gained 0.5% and the Zip Co Ltd (ASX: Z1P) share price added 0.6%.

Tyro share price whip-lashed by update

But its Tyro that is in focus after management said transaction values so far this month have risen by around 8% to $1.07 billion when compare to the same period last year.

Any improvement is welcomed news after transaction volumes crashed during the COVID-19 pandemic.

Volumes surged 30% in February this year compared to 2019, but slowed to 3% in March before tumbling 38% and 18% in the following two months, respectively.

Rebound still on shaky ground

The month of June then saw a 7% rebound but the recovery looks somewhat patchy. July’s gain accelerated to 11% but August experienced a 4% contraction, probably due to the second harsher lockdown of Victoria.

Investors may have decided to sell the stock initially as the month-to-date growth won’t put questions about the strength of the rebound to rest.

Can growth momentum be sustained?

There will also be doubts about the growth momentum. Unless transaction values jump in the latter half of September, this month’s growth will be lower than July.

Further, Tyro has traditionally focused on in store transactions. While it expanded into the online sphere, in shop sales are a significant revenue driver for the fintech bank.

Other factors weighing on the Tyro share price

The shutdown of the Victorian economy means that many shops have shuttered. Even in other states, customers are increasingly shopping online, which explains the surge in the Kogan.com Ltd (ASX: KGN) share price.

Tyro also provides loans to businesses. But in this recessionary environment, demand for credit is weak while smaller businesses are struggling to stay on top of loan repayments.

However, considering everything, the Tyro share price isn’t performing too badly even though it’s lagging many other fintecs. The stock is holding around breakeven when the ASX 200 lost 12% of its value since the start of calendar 2020.

More reading

• Two ASX infrastructure shares to buy before the October budget
• ASX 200 down 0.5%: Harvey Norman (ASX:HVN) update, Magellan (ASX:MFG) makes Barrenjoey investment
• Why I like Saracen (ASX:SAR) and these ASX mining shares today
• Is the Zip (ASX:Z1P) share price headed higher or lower? 
• Why these ASX laggards could start to rally in the next few months

Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Kogan.com ltd, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a sizeable decline. The benchmark index is currently down 0.55% to 5,831.5 points.

Four shares that are falling more than most today are listed below. Here’s why they are sinking lower:

The Byron Energy Ltd (ASX: BYE) share price has crashed 33% lower to 19 cents. This morning the oil and gas exploration company released drilling results from its SM58 G2 well. According to the release, the well has been drilled to a final total depth of 11,237 feet measured depth and has been deemed non-commercial. Management remains optimistic there will be other opportunities close by.

The Clover Corporation Limited (ASX: CLV) share price is down 5% to $2.14. This appears to have been driven by a broker note out of UBS this morning. Its analysts have retained their neutral rating and cut the price target on the specialist ingredients company’s shares to $2.30 following its FY 2020 results. It notes that FY 2021 is going to be a challenging year for Clover, with demand largely flat year to date.

The DEXUS Property Group (ASX: DXS) share price has fallen 3.5% to $8.72. Investors have been selling the property company’s shares after analysts at Morgan Stanley downgraded them to an underweight rating from overweight. The broker has also slashed its price target from $10.20 down to $8.15. Morgan Stanley has concerns over the Australian office market and expects DEXUS to struggle with its occupancy.

The Webjet Limited (ASX: WEB) share price is down 1.5% to $3.85. This also appears to have been driven by a broker note out of Morgan Stanley. This morning its analysts retained their underweight rating and cut the price target on the online travel company’s shares to $3.00. It is expecting another large loss from Webjet in FY 2021 before it returns to profit in FY 2022.

More reading

• These are the 10 most shorted ASX shares
• 3 ASX growth shares I’d buy today for growth and income
• ASX 200 drops 0.3%, gold miners keep rising
• Clover (ASX:CLV) share price falls 10% on FY20 results
• Why 5G Networks, AMP, Clover, & Reliance shares are dropping lower today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rhipe Ltd (ASX: RHP) share price has risen today, up 2% to $1.74 at the time of writing. The cloud channel company announced it has entered an agreement to acquire Parallo, a New Zealand-based IT services provider.

What does Rhipe do?

Rhipe is a global leader in cloud and technology solutions. The company provides licensing, business development and knowledge services in the growing cloud market.

Clients such as Microsoft, VMWare, Citrix and others utilise Rhipe’s platform to build and support their cloud licence programs. Most notably, Rhipe’s services and support division is the industry leader in Microsoft’s 365 implementation.

Rhipe takeover

Rhipe announced this morning it was buying Parallo for NZ$4.25 million. The 100% acquisition will support Rhipe’s customers by developing infrastructure technology to drive growth and opportunities.

In the past 9 years, Parallo has invested in service offerings focused on Microsoft Azure and VMware software, Rhipe’s two largest software vendors.  The purchase is anticipated to strengthen Rhipe’s brand positioning, and leverage cost and revenue synergies.

The acquisition will be completed in the next four weeks.

What did management say?

Rhipe CEO Dominic O’Hanlon was happy with Parallo’s achievements. He said:

Parallo has done an outstanding job as one of the leading IT service providers, delivering cloud-services and solutions that drive value to their local ISV market. This investment is significant in helping us achieve an enhanced product and services offering initially in New Zealand and Australia. As well as being cloud software and infrastructure focused, the majority of Parallo’s revenue is annuity based, which is very similar to rhipe’s revenue profile.

Mr O’Hanlon went on to say:

We intend to continue investing in the Parallo business to support its expansion into the Australia market, leveraging Rhipe’s existing employee and partner footprint. We look forward to utilising the skills and expertise of the Parallo team, combined with Rhipe’s extensive channel, to deliver greater outcomes for our partners.

Should you invest

The Rhipe share price has tumbled since the beginning of the year, down 12% from $2.06. However, in the months following, the Rhipe share price has been relatively flat, reaching a 52-week low of $1.16.

With a market capitalisation of $287 million and a price to earnings (P/E) ratio of 52, I would urge caution buying Rhipe shares. I think there are plenty of other ASX shares that are less high risk and offer more growth opportunities.

More reading

• Why Dicker Data, Harvey Norman, Rhipe, & Senex shares are pushing higher
• Rhipe share price dives 13% as FY20 results fail to impress

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX tech shares have proved to be among the most resilient stocks to own throughout the COVID-19 global pandemic. There has of course been the much publicised surge in the Afterpay Ltd (ASX: APT) share price, buoyed by the consumer trend towards online shopping during the relentless boredom of lockdowns. But data warehouse operator NextDC Ltd (ASX: NXT) has also seen a strong uptick in demand as more corporate clients transitioned to remote working arrangements. And it was only a couple of weeks ago that the share price of accounting software developer Xero Limited (ASX: XRO) breached the $100 mark for the first time in its history.

That’s not to say the outlook is entirely rosy. Extended lockdowns in Victoria, the announcement of a national recession, and continuing geopolitical tensions in our region are not great for business. But if this pandemic has taught us anything, it’s that our reliance on technology is – if anything – exacerbated by a crisis.

Additionally, the pandemic has changed how many of us work, in ways that are potentially long lasting – and possibly even permanent. It means that many ASX tech shares that support remote, agile and adaptive working arrangements have seen big upticks in demand.

So, with that in mind, here are three under-the-radar innovative companies that could grow into tomorrow’s major ASX tech shares.

3 ASX tech shares poised for growth

Whispir Ltd (ASX: WSP)

Whispir develops integrated, cloud-based communications software for corporate clients. It allows users to manage, coordinate and automate internal and external communications, and provides templates clients can use for marketing and publicity campaigns. Its centralised platform means that companies can oversee workflows, increase efficiencies, and more actively measure results.

Whispir’s FY20 results beat its own prospectus forecast, despite the headwinds generated by COVID-19. Annualised recurring revenues (ARR) jumped 34% year on year to $42.2 million, driven by higher than anticipated net new customer numbers. This ASX tech share also ended the year with a net cash balance of $15.2 million.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan develops software to help streamline and automate sales and marketing functions for its business clients. The company’s platform provides a centralised, integrated software solution that is designed to support businesses throughout their entire sales and marketing lifecycle, from onboarding and training new staff, to engaging new customers and providing accurate reporting.

Its FY20 results were also strong, with ARR up 53% to $35.8 million. It delivered at the top end of guidance, and also made a number of strategic acquisitions during the year. Bigtincan expects another solid year of growth in FY21, forecasting ARR growth in the range of 37% and 48% to between $49 million and $53 million.

Megaport Ltd (ASX: MP1)

Megaport is another innovative tech share helping businesses adapt to new COVID-19 remote working arrangements. It offers customisable, ‘on demand’ network services to corporate clients, giving companies the flexibility to manage their bandwidth usage. For example, businesses can scale up their bandwidth when transferring large amounts of data for major projects, and then reduce consumption during off-peak times. This allows businesses to be more efficient with their data usage and cut their overall costs.

FY20 was a bumper year for this ASX tech share. Revenues increased by 66% year on year to $58 million, customer numbers were up by 24% to 1,842, and the company ended the year with a $166.9 million cash position thanks to two successful capital raisings. And with international expansions continuing across Asia Pacific, Europe and North America, Megaport could be one of the top growth companies to watch over the next few years.

More reading

• These 4 ASX shares have grown more than 100% this year
• 3 exciting small cap ASX tech shares that could be the next big thing
• These exciting small cap ASX shares could be stars of the future
• Forget Afterpay (ASX:APT) shares, buy these 3 growth shares
• 5 quality ASX shares to buy in September

Rhys Brock owns shares of AFTERPAY T FPO, BIGTINCAN FPO, MEGAPORT FPO, Whispir Ltd and NextDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO, MEGAPORT FPO, and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Xero. The Motley Fool Australia has recommended BIGTINCAN FPO, MEGAPORT FPO, and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The world after COVID-19 is clearly going to be a changed place. Deciding which ASX shares to buy will require top-down and bottom-up analysis.

For instance, I don’t think the international borders are going to open any time soon. However, when they do, companies like Qantas Airways Limited (ASX: QAN) are likely to find fewer competitors still operating. Yet, from a bottom-up perspective, the company has a lot of cash and is taking the hard decisions to preserve it.

However, this means many Australians who were planning to travel overseas will spend their money on national tourism instead.

ASX shares to buy in national tourism 

There are two shares I think are likely to do well when state borders fully open. Both provide services based on national tourism and travel. 

First, Ingenia Communities Group (ASX: INA) develops, operates and sells residential housing in retirement, lifestyle and holiday communities. While it has already started to see sales return, this will only increase once all state borders come down. Despite the pandemic, the company still managed to increase earnings per share (EPS) by 5%, and increased operating cash flow by 13%. I think Ingenia is a great share to buy for short-term gains as well as strong performance over the medium to long term.

Second, Alliance Aviation Services Ltd (ASX: AQZ) is an airline that has done very well throughout the pandemic. In its FY20 report, it was able to show an increase in net profit before taxes of 24.1%. As a result of the company’s stoic lockdown performance, it was awarded flights to the Whitsundays by the Queensland Government. In addition, Alliance has also won a new 10-year airline services contract with South32 Ltd (ASX: S32) for the Cannington and Groote Eylandt (GEMCO) mine sites.

Entertainment shares

I have long been a fan of casino gaming company Aristocrat Leisure Limited (ASX: ALL). The company has branched out from poker machines. It now has revenue streams from casino management systems, online games, and electronic casino game platforms. I think Aristocrat is going to be a beneficiary of surplus cash from Aussies who can’t travel overseas. I believe Aristocrat is one of the best value shares to buy on the ASX today.

In its 6-month report to 31 March, the company reported a 7% increase in operating revenue. However, it recorded a 14.2% drop in net profit after tax. This was due to the coronavirus lockdowns eating into the company’s profits during March. Aristocrat is currently trading at a price to earnings (P/E) ratio of 11.32, less than half of the company’s 10-year average P/E.

Foolish takeaway

The next 6 to 12 months will see many companies change course as the economy starts to open up again. Instead of spending money on international travel, many people will look at spending it within Australia. This means good ASX shares to buy will be those particularly associated with leisure and entertainment. It has been a pretty rough year for all of us after all.

More reading

• Why I would buy these ASX growth shares right now
• The 3 best ASX shares to buy before October
• 3 ASX 200 growth shares to buy right now
• 5 quality ASX shares to buy in September
• Where to invest $10,000 into ASX shares

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to follow the lead of U.S. markets and start the week with a decline. The benchmark index is currently down 0.5% to 5,835.3 points.

Here’s what is happening on the market today:

IAG names its new CEO

The Insurance Australia Group Ltd (ASX: IAG) share price is on the rise today after naming its next CEO. The insurance giant has appointed Nick Hawkins as its new Managing Director and Chief Executive Officer following a comprehensive internal and external search. He will replace Peter Harmer when he retires from the role on 1 November. Mr Hawkins has served as deputy CEO since April and was the company’s CFO for 12 years prior to that.

Harvey Norman trading update.

The Harvey Norman Holdings Limited (ASX: HVN) share price is pushing higher on Monday after the release of a trading update. That update revealed strong sales and profit growth so far in FY 2021. Harvey Norman’s comparable aggregated sales to 17 September were up 30.3% compared to the prior corresponding period. Pleasingly, the company’s profit growth was even stronger. Harvey Norman’s unaudited profit before tax was up 185.8% to $178.1 million during the first two months of FY 2021.

Magellan makes Barrenjoey investment.

The Magellan Financial Group Ltd (ASX: MFG) share price is trading lower after revealing an investment in Barrenjoey Capital Partners. Barrenjoey is a newly established Australian-based full-service financial services company led by a host of experienced executives. Magellan has acquired a 40% economic ownership interest in exchange for approximately 1.2 million Magellan shares and $90 million of cash.

Best and worst ASX 200 performers.

The Whitehaven Coal Ltd (ASX: WHC) share price is the best performer on the ASX 200 at lunch with a 6% gain. This morning UBS retained its buy rating and lofty $2.00 price target on its shares. Whitehaven’s shares are fetching 93.8 cents currently. The worst performer has been the Unibail-Rodamco-Westfield (ASX: URW) share price with a 7% decline. Concerns over potential lockdowns in Europe may be weighing on the shopping centre operator’s shares.

More reading

• Why Dicker Data, Harvey Norman, Rhipe, & Senex shares are pushing higher
• Harvey Norman (ASX:HVN) share price surges higher on strong sales and profit growth
• Magellan (ASX:MFG) share price slides lower after investing in Barrenjoey
• Insurance Australia Group (ASX:IAG) share price lower after naming new CEO
• Why I like Saracen (ASX:SAR) and these ASX mining shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Data warehouse operator Nextdc Ltd (ASX: NXT) sometimes seems like the forgotten sibling of the WAAAX companies – the Tiffany to their Ivanka. But while Afterpay Ltd (ASX: APT) and co hog the media spotlight, NextDC diligently goes about growing its business. And notching up stellar financial results.

NextDC shrugged off the effects of COVID-19 to deliver earnings at the upper end of guidance for FY20. Total revenue grew 14% year-on-year to $205.2 million, while underlying earnings before interest, tax, depreciation and amortisation expenses (EBITDA) shot up 23% to $104.6 million. Not only that, but with a market cap now exceeding $5 billion, NextDC has broken into the ASX top 100.

But as Yoda famously stated: “There is another”. By focussing on the success of NextDC, we might be downplaying the exploits of another growing ASX data warehouse company, Macquarie Telecom Group Ltd. (ASX: MAQ) – the Eric to NextDC’s Don Jr, to keep the Trump analogy going.

About the Macquarie Telecom share price

Macquarie started out positioning itself as a telecommunications rival to Telstra Corporation Ltd (ASX: TLS), particularly for medium sized businesses and government. It has since grown into a diversified technology and communications business with four core segments. These include cloud services, government, telecom and data centres.

Its data centre business has notched up an impressive list of clientele, including the Department of Foreign Affairs and Trade, as well as ASX-listed Westpac Banking Corp (ASX: WBC) and News Corporation (ASX: NWS).

Macquarie’s full year revenue for FY20 was $266.2 million, a year-on-year increase of 8%. EBITDA rose 25% to $65.2 million. Despite a lower EBITDA, this result compares quite favourably against NextDC.  While NextDC posted an overall net loss after tax of $45.2 million for FY20, the Macquarie Group was profitable by $13.5 million.

Macquarie will massively ramp up investment in its data centre operations in FY21. It plans to invest up to $85 million next year to complete its Macquarie Intellicentre 3 East data centre This will almost triple the group’s data centre capacity from 10MW to 28MW.

Keep in mind that this is dwarfed by the $400 million NextDC plans to spend in FY21 expanding its data centre infrastructure. But it shows that Macquarie sees a strategic commercial opportunity in the data centre space. Macquarie also plans to start reporting its Data Centres business as a separate segment from FY21 onwards, showing the confidence it has in the success of this area of its operations.

Should you invest?

As an under-the-radar player in the data centre space, there is plenty to recommend about Macquarie. It is a well-diversified business with a high net promoter score, indicating a loyal customer base. As it targets mid-sized businesses and government, there may also be room for it to grow without needing to battle outsized rival NextDC.

However, the Macquarie Telecom share price has skyrocketed this year – up almost 100% to $45.80 as at the time of writing. FY21 is an investment year for the company, so there could be some pullback in its share price over the next 12 months as capital expenditure puts pressure on EBITDA, particularly over the second half. But if it can deliver on its growth potential, Macquarie may be a great company to own for FY22 and beyond.

More reading

• Insiders have been buying NEXTDC (ASX:NXT) and this ASX share
• 2 fantastic ASX growth shares to buy with $2,000 today
• Is the NEXTDC share price heading even higher from here?
• Investing $1,000 into these ASX shares could be a very smart move
• How the China rift could spur these ASX tech share prices to new records

Rhys Brock owns shares of AFTERPAY T FPO and NextDC. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

How’s Warren Buffett doing these days? Quite well. The legendary investor recently celebrated his 90th birthday, and he appears to be as active as ever.

On the other hand, Buffett’s investments haven’t performed so well this year. Most of the billionaire’s personal fortune is in Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) stock, which is down slightly year to date. Quite a few of Berkshire’s equity holdings have also declined this year.

Not all of them, though. Buffett and Berkshire definitely have some winners. That’s true even if we only include stocks held since the beginning of the year, which would leave the post-IPO skyrocketing Snowflake Inc (NYSE: SNOW) off the list. Here are Buffett’s three best-performing stocks so far in 2020 and whether or not they’re still good picks to buy now.

1. RH

Berkshire Hathaway doesn’t have a huge position in RH (NYSE: RH), formerly known as Restoration Hardware. But it’s a quintessential Buffett stock. RH is also the billionaire investor’s biggest winner in 2020 thus far. The stock has soared 77%, recently hitting an all-time high.

Home improvement is hot these days. The COVID-19 pandemic has fueled the flames with more people staying at home. RH has been a prime beneficiary of this trend as a leading luxury home furnishings retailer.

You can credit RH’s sizzling Q2 performance for its position as the top performer in Berkshire’s portfolio. The company generated 54% year-over-year earnings growth, with gross margins rising to 46.9% from 41.7% in the prior-year period. Free cash flow doubled year over year to $218 million.

2. Amazon

Amazon.com, Inc (NASDAQ: AMZN) ranks as Buffett’s second-best-performing stock this year, with a gain of 60%. Were it not for the recent big tech stock sell-off, the e-commerce giant would have taken the No. 1 spot.

Still, it isn’t surprising that Amazon has been a big winner. The lockdowns caused by the coronavirus pandemic sparked a surge in online shopping. This obviously helped Amazon as the world’s leading online retailer. It also worked to the company’s advantage in other ways. For example, Amazon’s cloud hosting business received a boost as organizations moved their apps and data to the cloud.

Technically, Berkshire’s decision to invest in Amazon was made by one of the company’s top investment managers rather than Buffett himself. However, Berkshire doesn’t put hundreds of millions of dollars in a stock without the Oracle of Omaha giving his blessing. Buffett has acknowledged, though, that he has “been a fan” of Amazon and “an idiot for not buying it” in the past.

3. Apple

What’s Warren Buffett’s favorite stock (other than Berkshire Hathaway itself)? Apple Inc. (NASDAQ: AAPL). It’s Berkshire’s largest holding by far. Apple is also one of Buffett’s top stocks so far in 2020, with a gain of 46%.

The main reason for Apple’s tremendous performance this year is the company’s continued booming business. Apple reported record results in Q3. Revenue jumped 11% year over year to $59.7 billion. Earnings per share soared 18%. The company generated operating cash flow of $16.3 billion. 

Apple also benefited from investors’ excitement over its 4-for-1 stock split announced in July. Sure, this stock split didn’t change anything fundamentally about the company or its prospects. Several trading platforms also allow buying partial shares of stocks, making stock splits less meaningful than they’ve been in the past. However, Apple’s stock split came at the right time to create buzz for the stock.

Although Apple has been subject to a September sell-off, the drop may not linger — especially after certain upcoming developments. 

Are they buys?

Yes, yes, and yes. My view is that all three of these Buffett stocks are great picks right now for other investors.

I think that the real estate and home improvement markets will continue to boom. Low interest rates will certainly help. An ongoing trend of families moving to larger suburban homes could also accelerate with increased adoption of working from home even after the COVID-19 pandemic ends. These factors should all be great growth drivers for RH.

As for Amazon, my view is that it won’t slow down anytime soon. E-commerce and the cloud will become even bigger. I look for Amazon’s expansion into new areas (especially healthcare) to pay off nicely in the future as well.

Apple should profit tremendously from the adoption of high-speed 5G networks. The company will soon launch its first 5G-enabled iPhones. I think this will spur a huge wave of customer upgrades. I’m also optimistic about Apple’s opportunities with its services businesses and in new technologies, such as augmented reality. My hunch is that Apple will remain one of Buffett’s favorites — and top performers — for years to come.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Keith Speights owns shares of Amazon, Apple, and Berkshire Hathaway (B shares). John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Snowflake Inc and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2021 $200 puts on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, and long January 2021 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Amazon, Apple, and Berkshire Hathaway (B shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Warren Buffett’s 3 best-performing stocks so far this year: Are they buys now? appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but has fallen short. At the time of writing the benchmark index is down 0.2% to 5,852 points.

Four shares that have not let that hold them back today are listed below. Here’s why they are pushing higher: 

The Dicker Data Ltd (ASX: DDR) share price is up 2.5% to $8.10. Today’s gain could be attributable to the wholesale distributor of computer software and hardware joining the S&P/ASX All Technology Index (ASX: XTX) this morning.

The Harvey Norman Holdings Limited (ASX: HVN) share price has climbed 2.5% to $4.46. This morning the retail giant released a trading update which revealed strong sales and profit growth so far in FY 2021. Harvey Norman’s comparable aggregated sales for the period 1 July 2020 to 17 September were up a massive 30.3% compared to the prior corresponding period. Things were even better for its earnings, with its unaudited profit before tax up 185.8% to $178.1 million during the first two months of FY 2021.

The Rhipe Ltd (ASX: RHP) share price is up 5% to $1.78 after announcing an acquisition. The cloud and technology solutions provider has entered into a binding agreement to acquire Parallo. It is a New Zealand-based IT services provider that specialises in infrastructure and cloud deployment technologies. Rhipe is acquiring Parallo for an initial fee of NZ$4.25 million. The acquisition is expected to be earnings accretive in FY 2021.

The Senex Energy Ltd (ASX: SXY) share price is up 6.5% to 32.5 cents. This morning the energy producer announced that it has been awarded preferred tenderer status for natural gas acreage in the Surat and Bowen basins. This is part of the Queensland Government’s domestic gas acreage tender process. The award includes additional highly valuable Atlas acreage immediately adjacent to Senex’s existing development.

More reading

• Harvey Norman (ASX:HVN) share price surges higher on strong sales and profit growth
• 3 ASX dividend shares for income investors to buy today
• 3 ASX shares with high-flying dividend yields
• Can the Harvey Norman (ASX:HVN) share price push higher in 2021?
• Top ASX dividend shares to buy in September 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Dicker Data, Harvey Norman, Rhipe, & Senex shares are pushing higher appeared first on Motley Fool Australia.

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